Credit scores are a complicated but important part of our adult life, and it’s likely that there is more that goes into determining those scores than you think. If you’re not careful you could harm yourself in more ways than you’re aware of.
We all know that the best practice to taking out a loan is to compare multiple offers against each other, but will that many inquiries on your credit hurt your scores?
We continue to be surprised by the fact that quite a few borrowers with damaged credit still don’t understand why the credit scores used by car dealers often aren’t the same as the one they think they have.
Consumers with problem credit thinking of applying for an auto loan need to first check their credit reports to be sure they meet the minimum in-bureau requirements of the majority of subprime lenders.
It’s especially important that consumers with poor credit understand the impact that traveling from dealer to dealer or submitting multiple online car loan applications and the credit inquiries that follow might have on their credit scores.
Most car buyers with poor credit probably know that not paying their bills on time – or even at all – can both lower their FICO scores as well as either prevent them from getting an auto loan – either that or cause them to pay a higher interest rate from a subprime lender.